Companies

US luxury spending declines for third consecutive month

Oct 16, 2026 United States

US luxury spending fell for the third consecutive month in September, pointing to continued weakness in demand for high-end goods, according to Citi credit card data reported by Reuters

US spending on luxury brands fell by 6% year-on-year in September, following a 4% decline in both July and August. These figures come at a time when luxury companies are dealing with ongoing weakness in China and economic uncertainty related to the war in Iran.

This slowdown is putting pressure on brands that have relied on robust demand from wealthy US consumers to offset weaker sales elsewhere. Tapestry, LVMH, and Ferragamo are among the companies identified by Citi as being particularly exposed to the US market.

Still “brands with greater exposure to higher-end consumers should remain relatively resilient, supported by equity-market wealth effects”, Citi said as quoted by Reuters.

Spending trends varied across the luxury sector in September. Expenditure on leather goods and ready-to-wear items increased month-on-month, while sales of watches and luxury jewellery continued to decline. According to Citi’s analysis, luxury brands selling apparel, shoes and leather goods have continued to raise prices.

The slowdown comes amid a decline in consumer confidence, as indicated by surveys from the Conference Board and the University of Michigan, which suggest mounting economic concerns ahead of November’s midterm elections. Rising Treasury yields and mortgage rates are putting further pressure on spending, and analysts at Morgan Stanley have warned that weaker US demand could hinder the recovery of the luxury sector.

Image Credits: businessoffashion.com

United States Confidence Economy Luxury